Ireland

Fitch on Friday affirmed the AAA rating of Anglo Irish’s commercial mortgage covered bonds issued in the UK after making an exception to the criteria it usually applies to a bank that fails to meet the minimum swap counterparty ratings for top rated covered bonds.

Fitch yesterday (Tuesday) affirmed the ratings of Hypo Real Estate’s operating subsidiaries at A- with a stable outlook.

Fitch yesterday (Tuesday) said that the Irish covered bond framework provides a strong foundation for the continuity of covered bond payments in the event of issuer insolvency.

Two days after downgrading EBS Mortgage Finance, Fitch on Friday affirmed the AAA rating of its covered bonds, but said that it will be keeping a close eye on developments surrounding the covered bonds’ overcollateralisation and swap counterparty.

Fitch yesterday (Wednesday) downgraded EBS Building Society’s senior debt rating from A to BBB+. The rating action dragged down the support rating of EBS’s covered bond issuing subsidiary, EBS Mortgage Finance, from 1 to 2 to reflect the change in its parent's rating.

Anglo Irish Mortgage Bank yesterday (Thursday) issued the debut transaction off its Irish commercial mortgage covered securities programme. The deal is also the first for the market segment.

Fitch yesterday (Wednesday) assigned Anglo Irish Mortgage Bank a long term issuer default rating of A-, with a stable outlook.

Moody's yesterday (Monday) downgraded Anglo Irish Bank Corporation’s long term debt rating from A1 to A2 after the Irish government announced it is nationalising the bank. The outlook on the rating is negative.

Fitch on Friday affirmed the long term issuer default ratings of Anglo Irish Bank Corporation at A- and the AAA rating of its covered bonds, while Standard & Poor’s today (Monday) confirmed that its A- rating of the bank remains on negative review.

The Irish government last (Thursday) night nationalised Anglo Irish Bank, after its share price had fallen sharply in recent days amid deposit withdrawals. The bank was one of three Irish covered bond issuers to be downgraded by Fitch earlier yesterday, while another’s rating was placed on negative review.

EBS Mortgage Finance yesterday (Tuesday) executed and retained the first deal off a Eu6bn covered bond programme.

Rating action: Fitch today (Wednesday) assigned ratings to EBS Mortgage Finance, a fully owned subsidiary of EBS Building Society that has been set up under Ireland’s covered bond legislation.